NetApp Q1 2024 Earnings Report
Key Takeaways
NetApp reported a decrease in net revenues to $1.43 billion, a 10% year-over-year decline. The company is focusing on better performance in the storage business and a more focused approach to cloud, introducing innovations like NetApp ASA A-Series and the Ransomware Recovery Guarantee.
Net revenues were $1.43 billion, a 10% decrease compared to Q1 2023.
Hybrid Cloud segment revenue was $1.28 billion, down from $1.46 billion in Q1 2023.
Public Cloud segment revenue increased to $154 million, compared to $132 million in Q1 2023.
GAAP net income was $149 million, and non-GAAP net income was $249 million.
NetApp
NetApp
Forward Guidance
NetApp expects net revenues to be in the range of $1.455 billion to $1.605 billion and earnings per share to be between $0.90 and $1.00 (GAAP) or $1.35 and $1.45 (Non-GAAP) for the second quarter of fiscal year 2024.
Positive Outlook
- Net revenues are expected to be in the range of $1.455 billion to $1.605 billion
- GAAP earnings per share is expected to be in the range of $0.90 - $1.00
- Non-GAAP earnings per share is expected to be in the range of $1.35 - $1.45
- Consolidated gross margins are expected to be ~69% (GAAP)
- Consolidated gross margins are expected to be ~70% (Non-GAAP)
Challenges Ahead
- Net revenues are expected to be down year-over-year in the low-to-mid single digits on a percentage basis.
- GAAP Operating margins are expected to be ~18%
- Non-GAAP Operating margins are expected to be ~25%
- GAAP earnings per share is expected to be in the range of $3.75 - $3.95
- Non-GAAP earnings per share is expected to be in the range of $5.65 - $5.85